Acquire the fundamentals
Target audience
0.5 day
Virtual Classroom
Prerequisites
Prerequisites: basic knowledge of finance and management control is required.
Materials: training materials and the link to the virtual classroom are provided the day before the training session.
Objectives
◗ Identify the factors influencing variations in earnings
◗ Analyze the variation in earnings vs. previous period (or vs. forecast) by origin of cause and responsibility, based on sales analysis
◗ Calculate the main variances by linking them to operational levers
◗ Interpret this analysis and draw conclusions to improve performance
Training program
◗ Read and interpret results using vertical and horizontal analysis
- Reading P&L in value, percentage and basis points
- Margin cascade: contribution margin, gross margin, operating income
- Analysis of an item that improves in value terms but deteriorates in percentage terms
✔ UNDERSTAND | Illustration: P&L margin cascade
✔ APPLY | Case study: calculating the operating income variance
✔ ASSESS | Quiz: what do you think...?
◗ Break down income variances by origin
- Calculation of variances: volume, price, mix, performance effects, exchange rates, scope of consolidation,
non-recurring
- Completing the material and MOD analysis
- Squeeze effect, price variation, inflation, impact of purchasing, internal efficiency
- Over- or under-absorption of fixed costs
- Focus on variations in payroll
- The income statement bridge as a summary statement
✔ APPLY | Case study: building the analysis of an activity gap in a workshop
✔ ASSESS | Quiz: in your opinion... How much of the variance comes from consumption?
◗ Identifying root causes and leverage effects
- Balance of performance: gains vs. losses, price/cost mix
- PDCA and "5 whys" methodology
✔ EXPERIMENTATE | Workshop: building a performance balance for an industrial perimeter
✔ APPLY | Case study: quantifying the impact of a material cost increase on operating income
✔ ASSESS | Quiz: in your opinion... How can you compensate for a price drift?
◗ Formalizing and reporting a gap analysis
- Present results in graphical bridge format
- Add detailed comments
✔ UNDERSTAND | Illustration: reading an operating margin bridge
✔ EVALUATE | Debrief: strengths and blind spots in financial communication
Teaching and assessment methods
◗ Distance learning:
- Three visuals: video presenter, presentation, virtual flip chart
- 6 participants maximum
Before: self-assessment quiz
During the session: presentation of the main principles, practical implications and case studies, examples drawn from recent financial statements... . Practical case studies and interactive quizzes ensure that you have acquired the knowledge you need.
Afterwards: the trainer is available at the end of the course to answer any questions relating to the training.
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Price
740 EXCLUDING VAT
Testimonials
Essentials in 3 hours - Result Bridge
Essentials in 3 hours - Result Bridge
Essentials in 3 hours - Result Bridge
Jonathan C.
Company
Training